Question: Question 5 10 pts Based on the following information determine the covariance and correlation between the returns of the two stocks. State of Economy Bear

 Question 5 10 pts Based on the following information determine the

Question 5 10 pts Based on the following information determine the covariance and correlation between the returns of the two stocks. State of Economy Bear Normal Bull Probability of State of Economy 0.10 0.65 0.25 Return of X 0.03 0.11 0.25 Return of Y 0.05 0.062 0.092

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